Solihull-based Secure Trust Bank is boosting its coffers by £50 million amid plans to lend more to small businesses.
The bank has proposed a £48.76 million placing of more than 2 million new ordinary shares and more than one million existing sale shares.
Secure Trust said net proceeds would be used to finance the group’s organic and inorganic growth opportunities, within its existing offering as well as into new market sectors.
Chief executive Paul Lynam added: “We announced at our AGM in May record levels of new business lending in motor finance and retail point of sale in the first part of 2014 and strong demand for our new SME offering.
“This placing almost doubles the capital resources of the bank and will enable us to accelerate our plans for SME lending and support further product development in consumer finance.
“I am grateful for the on-going support of our existing shareholders and am delighted to welcome a number of significant new strategic shareholders to the register who understand and share our ambition to build a more diversified challenger bank.”
Secure Trust said it was working on a “diverse pipeline” of business development opportunities as it progressed with its growth strategy.
Oriel Securities, Keefe, Bruyette & Woods and Canaccord Genuity advised on the placing.
